Tesla Q2 deliveries miss expectations, stock rises 5%

Tesla released its Q2 2025 production and delivery numbers, producing 410,244 vehicles and delivering 384,122 units, falling short of Wall Street’s consensus mark. Despite the miss, shares rose about 5% to $315.65. GM’s EV sales more than doubled in Q2, while China’s BYD sold 606,993 units, up 42.5% YoY.

Tesla faces a demand problem despite ramping up production of the new Model Y. The company’s brand image has suffered due to an aging model lineup and Elon Musk’s polarizing image. Energy storage and charging segments are thriving, with deployments up 113% YoY and expectations for a 50% increase in 2025.

Tesla is banking on self-driving technology with robotaxi services, but trails leaders like Waymo in the autonomous vehicle race. Tesla’s stock has declined 22% YTD, with a stretched valuation based on a high price/sales ratio. Zacks estimates show a decline in sales and earnings for 2025, with a challenging near-term outlook for the company.

Investor sentiment towards Tesla is wavering due to delivery shortfalls, margin pressure, and increasing competition. The company’s long-term potential in areas like energy and autonomy is still present, but risks currently outweigh rewards. Tesla carries a Zacks Rank #5 (Strong Sell).

Read more at Nasdaq: Tesla Q2 Deliveries Weak But Shares Rise: What’s Next for Investors?